I have kept one old SMS which says "buy essar oil @ cmp(220), tgt 550, SL as per risk appetite, horizon one month, reason mat puchhana warna paisa nahi banega."
Now, I have got a new sms from the same friend which reads "Lalu declares free tickets for all those who invest in stock markets; for travelling to their native village, just keep the DP statement with you :) "
Financial contagious tantrums the Indian market. But trust me, it clears long awaited dirt out of the market. Quick rich formula disappears from the market just in 56 seconds when SENSEX dips to circuit filters. Dalal street & Exchange plaza soon becomes un-holistic as most of the stocks listed on BSE and NSE feels the heat of gravity.
Market pundits say "It was expected but not the pace with which if fell".
Ok here we go then.. Doest it still attract me to invest in equities and in MFs ?
In a very short Answer - Yes, indeed.
Story still remains the same about Shinning India. As Einstein said - One minute in pain is an hour long experience and one hour in pleasure is a minute experience. I guess thats exactly the experience investors are undergoing at the moment. Personally, I am going long on stocks with my hard earned money. This is despite the fact that markets may make new lows considering rumors of some of the biggest bankruptcies are due to hit Global markets thanks to sub-prime credit crisis in the West(actually thanks to financial engineering and craftful packaging and marketing of Mortgage backed securities). Selectively some of the stocks such as NTPC, Tata Motors, RIL, REL, Wipro, Infy, Suzlon, Indiabulls, DLF, SBI, Kotak bank, TCS, Titan, JP Hydro, Ranbaxy, Nactor life, RSWM, Vardhaman text etc. still has same fundamentals to attract valuation. Their order books are full, margin yield are at historically high level, cash flow levels are at never before levels and above all, their investments in capacity expansion project gives a positive indicator.
Why now ? Why should I go shopping these stocks when I am expecting another fall. Reasons are very simple. First, I am not the one who believes in bottom fishing. Second, After the current market fall I am not receiving SMSs with aggressive targets by my 'wellwisher' friends. Well, that's a buy for me in equities.
Happy wealth creation.
5 comments:
Well written post. I think if stock tips were considered as products instead of services, their (product) placement in social circles, might have contributed a lot to the amount of retail wealth that has poured into the bourses over the last few months.
the source from where u have copy pasted this.. is missin in ur presensation... gujju bhai........ why equity????? kuch commodity bhi bolo...
impression of copy paste is an award to me. Thank God, atleast I can give an impression of being good.
No cut paste. Many things will come here and that too purely original. including spell mistakes .. but i will re-produce eventually what i have kept to myself - my original work and thoughts. be it economics, politics, society, sports, cricket(its not a sport in india - a religion), religion, science,life style and much more...but everything I shall depict in words .. what I feel as a learning journo.
oh well written Mr. Jinu analyst
This shows u r long term bullish on Indian Equity Market....but yaa i agree market willl soon come to its pace back..
bt hey why no comment on our fav commodity market??????/
hello jinendra,
i has always been a pleasure to read you comments, which i am sure have been drafted in you leisure time considering your experience and current scenario.
I am glad to see that investors like you also consider the Contrary Opinioin theory of the market.
To me, the contrary opinion theory is the best measure to play such markets in short term. Its good to be contray but not in long term.
I would say that indian mkts are backed by some of the greatest minds of the world, which work contrary to the general public. Stocks at high level went higher and stocks at low levels went lower from their levels.
You may call it a rumour, but the pain has been felt by the American Financial Giants. DOW which was trading at 12-13PE is now trading at a PE of 60 and this drastic change in the PE took place in just one week, following the major losses and write offs by the American Giants.
Speculators in the Indian Markets had become of the belief that the stocks are like their sad children and will only and only grow with age, the whole community of that belief has been given a stick beating and they have to realise that Asset Classes have cycles and its a vicious circle. That is why, diversification is the name of the game.
Fundamentals of the indian economy are robust and its only because of that, we command high PE valuations. To justity the current high valuations the Index Earning needs to grow at 18.5% for the next 10 yrs, which is a task to be worked on.
Dont was boast of something, but in last Aug after reading several articles on sub-prime, we had made a consensus that world mkts will feel the real pain when this cycle matures, its in the process.
I am really looking fwd to see, how good the stimulus package proves to be and what effect do the current monetary measure have on the US economy, sooner the better for the world markets.
I also have am eye on MERCER (rating agency of world bank)which has been asked to make a report on the indian corporate sector and advised to more than USD 1 trillion of AUM. Any positive signals in that report could bring more of pension and insurance funds to india.
rahi baat aapki writing skills ki.. u have improved tonnes and miles.. and have a way to go brother.. i can really put u as an examply of a visionary, who has constanly been working himself and i know what u have achieved. .. only with this belief and constant attempt to further improve yourself, you are bound to touch much higher levels in life. I really admire you for this quality of yours.. baki sab toh KUDAA hai tujhe,,, HA HA HA HA...
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